Elle purchased a 6% coupon rate Commonwealth Government Securities (CGS), which mature in 2022 June. Assume the
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Elle purchased a 6% coupon rate Commonwealth Government Securities (CGS), which mature in 2022 June. Assume the face value is 100, and yield to maturity (YTM) is 5% P.A.
Elle purchased Commonwealth Government Securities (CGS) paying 6% coupon, which mature in 2022 June. The face value is 100, and YTM is 5% P.A.
Assume that after 15th of June 2021, a similar one-year on the run CGS yield decreases by 2%, coupon rate is still 6%, calculate the modified duration for such CGS.
Related Book For
Investments Analysis And Management
ISBN: 9781118975589
13th Edition
Authors: Charles P. Jones, Gerald R. Jensen
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